Banks announce interest rate cuts

Press, 30 May 1987, Page 3

Banks announce interest rate cuts

PA Wellington The National Bank will join the Bank of New Zealand next month by cutting 1.5 per cent from its base interest rate. The National Bank announced yesterday that the rate would come down to 21.5 per cent on June 15, the day before BNZ reduces its base rate 1 per cent to 22 per cent.

The National Bank’s mortgage rates would be reduced at the same time and its Visa rate would follow. The bank’s chief executive, Mr Jim Macaulay, said the bank’s move followed the fall in wholesale rates over recent weeks.

“I am hopeful that we shall continue to see a gradual decline in interest rates over the next few months.” The National Bank’s best rate for home mortgages will be reduced 0.5 per cent to 19 per cent, while the Visa rate will come down 2 per cent to 28 per cent from the start of the billing cycle beginning on July 3. Mr Macaulay said the bank’s retail deposit rates would also be cut.

BNZ’s announcement yesterday included a cut in non-table term loan rates of 1 per cent and in its Visa rate of 1 per cent to 29 per cent.

Mr Colin Gravett, of Christchurch, added a clasp and a star to his New Zealand Prison Service Medal yesterday, marking 21 years on the job. He was presented with his clasp at a ceremony at the Paparua Prison Community Hall alongside nine other officers who were awarded medals for 14 years service.

Mr Gravett, who was presented with his award by the member of Parliament for Selwyn, Miss Ruth Richardson, has worked at' Paparua Prison for all but one year of his service. The officers presented with the long service medal were: J. Aldridge, Christchurch Women’s Prison; M. Berry and A. Kelly, Rolleston Prison; J. Donaldson, A. Edwards, J. Miller, P. Tahau, G. Thorp and N. van de Langenberg, Christchurch Prison.